KTDAL – Building Sustainability through Inclusion

This case won Third Prize in the Corporate Sustainability Track in the oikos Case Writing Competition, 2016. Organized by oikos International, Switzerland.

Abstract

Kenya Tea Development Agency Limited (KTDAL) follows a unique model under which small tea farmers are shareholders. By the end of 2013, it had around 560,000 such shareholders. The farmers not only get money for the tea leaves they produce but also receive a share in the profits, which means they receive a higher price per kg of tea leaves than tea farmers anywhere else in the world. KTDAL’s inclusive model has empowered the farmers to control and own the entire tea industry value chain. KTDAL’s market driven sustainable model has managed to get the market closer to the small tea farmer and make Mombasa one of the world’s top tea auction centres.KTDAL promotes sustainable agricultural practices among its small farmers through its Farmer Field Schools and, apart from achieving economies; the business model reduces costs by collective bargaining. It improves efficiencies and quality by leveraging on modern agricultural and processing techniques. KTDAL’s benefits go beyond commercial viability with the social, environmental, and economic lives of 4 million people being impacted, directly or indirectly.

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Issues

The case is structured to achieve the following teaching objectives:

Understand the complexities in building a sustainable and inclusive business model.

Analyze the sustainable and inclusive business model

Debate the importance of inclusive business for the sustainability of small farmers.

Appreciate the social, economic, and environmental impact of sustainable and inclusive business models.